MINDANAO'S economic ties with China face renewed scrutiny amid fresh diplomatic tensions between the Philippines and Chinese governments, raising questions about the potential impact on investor confidence and ongoing economic cooperation.
Mindanao Development Authority (MinDA) Chairperson Secretary Leo Tereso Magno emphasized the need to maintain a peaceful and stable business environment, saying differences between the two governments should be resolved through dialogue and should not derail economic partnerships.
Speaking at the Habi at Kape media forum at Ayala Malls Abreeza in Davao City on October 21, 2026, Magno said Mindanao continues to attract investors to help advance its development priorities, making constructive international relations important to the region’s economic prospects.
“Usually tayo ang nag-aakit at nag-iimbitar ng mga investors na, ‘Sana pumasok kayo, kailangan namin ng tulong,’” Magno said, describing how Mindanao continues to invite investors to support its development.
His remarks came following controversial statements by Chinese Ambassador Jing Quan about the possibility of conflict between the two countries.
On October 15, Jing told reporters that China could easily win if it chose to use force, but added that Beijing would not take that course because it valued peace. Philippine officials criticized the statement, with the Department of Foreign Affairs expressing concern that the remarks could be interpreted as a threat.
President Ferdinand Marcos Jr. also said the comments sounded threatening and warranted a direct discussion with the envoy.
The dispute prompted further exchanges between the two governments. On October 19, China's Foreign Ministry defended Jing and urged the Philippine side to restrain what it described as irresponsible statements by certain politicians that could damage bilateral relations.
Beijing also reiterated that improving ties with the Philippines would serve both countries’ interests.
Magno said MinDA hopes the issues involving government officials and the Chinese Embassy can be resolved through constructive discussions.
“Hopefully, we will find a way to resolve it. Kung may away palagi, hindi healthy 'yan,” he said.
He emphasized that disagreements are not conducive to an investment climate that depends on stability, communication, and the willingness of parties to find common ground.
As an investment promotion agency, Magno said MinDA sees a peaceful environment as essential to attracting businesses and encouraging investors to consider opportunities in Mindanao.
“The best business or investment climate is one that is peaceful, where everyone discusses and talks on the table, finding a resolution to gaps and to problems,” he said.
Magno added that the need for stable relations extends beyond China, covering Mindanao’s engagement with other countries and potential international partners.
Chinese investors remain interested
Despite the diplomatic friction, Magno said Chinese investors continue to show interest in Mindanao, citing a recent meeting with Chinese investors.
“Oh yes, oh yes. Nag-usap kami nito two days, kausap natin sila. Nakita niyo siguro 'dun sa website. Kausap natin ang Chinese investor,” he said.
However, Magno acknowledged that some issues remained unresolved, referring to concerns involving Davao Airport.
The continued interest he described comes as China maintains a significant role in the Philippines’ trade relations. In remarks delivered at the Second Diliman Dialogue on October 15, Jing said China had remained the Philippines’ largest trading partner and biggest source of imports for 10 consecutive years.
He also reported that bilateral trade reached US$44.52 billion in the first half of 2026, an increase of about 20 percent from the same period a year earlier. These figures were cited by the Chinese ambassador in his official remarks.
Jing also acknowledged in the same address that Chinese investment in the Philippines continued to lag behind investment levels in several other Southeast Asian countries.
He called for improvements to the business environment to restore investor confidence.
Meanwhile, Malacañang has maintained that the Philippines intends to preserve economic and diplomatic engagement with Beijing while defending its sovereignty and national interests in the West Philippine Sea.
Palace Press Officer Claire Castro said on October 19 that the government remained hopeful bilateral relations could improve despite the latest dispute. DEF